(i) The colonial power had exploited India economically. The country faced severe problems like poverty, unemployment, population growth, low standards of living, low productivity of agriculture and industries and backwardness in the fields of knowledge, science and technology. Planning was essential to solve these problems.
(ii) India established the Planning Commission in 1950 with Prime Minister Pandit Jawaharlal Nehru as its Chairman.
(iii) It formulated India’s five year plans that included rural and agricultural development, : balanced industrialisation, provision for a minimum standard of living and economic development consistent with democratic ideals.
(iv) It focused on people’s participation and individual development in the formulation and implementation of the five year plans.
